EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Veterans’ Affairs Measures No. 1) Regulations 2026
The Financial Framework (Supplementary Powers) Act 1997 (the FFSP Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies. The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations). The powers in the FFSP Act to make, vary or administer arrangements or grants may be exercised on behalf of the Commonwealth by Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.
The Principal Regulations are exempt from sunsetting under section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 (item 28A). If the Principal Regulations were subject to the sunsetting regime under the Legislation Act 2003, this would generate uncertainty about the continuing operation of existing contracts and funding agreements between the Commonwealth and third parties (particularly those extending beyond 10 years), as well as the Commonwealth’s legislative authority to continue making, varying or administering arrangements, grants and programs.
Additionally, the Principal Regulations authorise a number of activities that form part of intergovernmental schemes. It would not be appropriate for the Commonwealth to unilaterally sunset an instrument that provides authority for Commonwealth funding for activities that are underpinned by an intergovernmental arrangement. To ensure that the Principal Regulations continue to reflect government priorities and remain up to date, the Principal Regulations are subject to periodic review to identify and repeal items that are redundant or no longer required.
Section 32B of the FFSP Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations. Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations. Section 32D of the FFSP Act confers powers of delegation on Ministers and the accountable authorities of non-corporate Commonwealth entities, including subsection 32B(1) of the FFSP Act. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.
Section 65 of the FFSP Act provides that the Governor-General may make regulations prescribing matters required or permitted by the FFSP Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FFSP Act.
The Financial Framework (Supplementary Powers) Amendment (Veterans’ Affairs Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the government to provide a grant to the Ballarat City Council for the Ballarat Hub (the grant). The grant will be administered by the Department of Veterans’ Affairs, part of the Defence portfolio.
The grant aims to provide targeted capital works funding for the delivery of an appropriate facility intended to address the needs of Australian Defence Force members, including reservists, veterans and their families in Ballarat and the surrounding region. The Ballarat Hub will be operated by the Ballarat Veterans’ Assistance Centre (BVAC), a registered charity dedicated to providing support, advocacy, and resources for veterans and their families, in partnership with other local ex-service organisations.
Funding of $3.0 million over four years from 2025-26 will be provided to the Ballarat City Council to fund capital works to partially refurbish an existing Council-owned building to create a welcoming, functional, and accessible support centre.
The Ballarat City Council, as the property owner, will collaborate closely with BVAC and other local ex-service organisations to ensure the design and delivery of the facility is
fit-for-purpose. Once the facility refurbishment is complete, the Ballarat City Council will manage access and use arrangements with BVAC and supporting service delivery partners for the facility’s operations.
The grant will encourage greater social and community inclusion for veterans within the local veteran community, and with other ex‑service organisations’ networks. This will increase advocacy access for veterans and families and create links to local tailored wellbeing support, while providing a space for veterans and their families to engage in their community and build social connection.
Details of the Regulations are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.
The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.
The Regulations commence on the day after registration on the Federal Register of Legislation.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Veterans’ Affairs.
Attachment A
Details of the Financial Framework (Supplementary Powers) Amendment
(Veterans’ Affairs Measures No. 1) Regulations 2026
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Veterans’ Affairs Measures No. 1) Regulations 2026.
Section 2 – Commencement
This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation.
Section 3 – Authority
This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.
Section 4 – Schedules
This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations) are amended as set out in the Schedule to the Regulations.
Schedule 1 – Amendments
Financial Framework (Supplementary Powers) Regulations 1997
The item in Schedule 1 amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on an activity to be administered by the Department of Veterans’ Affairs (the department), part of the Defence portfolio.
Item 1 – In the appropriate position in Part 3 of Schedule 1AB (table)
This item adds one new table item to Part 3 of Schedule 1AB.
Table item 111 – Grant to the Ballarat City Council for the Ballarat Hub
New table item 111 establishes legislative authority for the government to provide a grant to the Ballarat City Council to establish a facility in Ballarat, Victoria (the Ballarat Hub) where veterans and their families can be assisted to access government and non-government supports and services (the grant).
The grant will implement the Government’s 2025 federal election commitment ‘The Ballarat Veterans Hub’.
The grant aims to provide targeted capital works funding for the delivery of an appropriate facility intended to address the needs of Australian Defence Force (ADF) members, including reservists, veterans and their families in Ballarat and the surrounding region.
Supporting the mental and physical health and wellbeing of veterans and families is a key priority for the Australian Government, including through the provision of effective supports and services. Feedback from the veteran and broader community, along with findings from the Royal Commission into Defence and Veteran Suicide, indicate that the existing Veterans’ and Families’ Hubs Program (the Hubs program) is having a positive impact on local communities. The Hubs program provides a space for veterans’ services and advocacy organisations to co-exist and deliver integrated support to current and former serving ADF members, including reservists, and their families. Whilst the Ballarat Hub is not funded through the existing Hubs Program, its establishment will leverage the existing work and momentum of the Hubs Program to reduce barriers to access and support for veterans and their families.
The Ballarat Hub will be operated by the Ballarat Veterans’ Assistance Centre (BVAC), a registered charity committed to supporting veterans and their families through advocacy, resources, and wellness programs. BVAC currently provides advocacy and wellness services to veterans and their families within the Ballarat region, however, the growing demand for these services has exceeded what BVAC can effectively deliver from its existing premises. To meet the community’s needs, BVAC will partner with other local ex-service organisations to expand its capacity and impact.
The Ballarat City Council, as the property owner, will deliver the capital works activities under the grant to partially refurbish an existing Council-owned building to create a welcoming, functional, and accessible support centre. Ballarat City Council will collaborate closely with BVAC and other local ex-service organisations to ensure the design and delivery of the facility is fit-for-purpose.
The Ballarat Hub will feature a reception area, confidential soundproof consultation rooms, a multipurpose space, and dedicated areas for social gatherings. This initiative will enhance access to advocacy services for veterans and their families, strengthen connections to tailored local wellbeing support, and provide a community space where veterans and their families can engage and build social connections. Once the facility refurbishment is complete, the Ballarat City Council will manage access and use arrangements with BVAC and supporting service delivery partners for the facility’s operations.
In addition to providing direct support and referrals to other service providers, the Ballarat Hub will serve as a vital avenue for social connection for veterans and their families, including those living with disabilities or experiencing mental health challenges. Furthermore, the broader network of ex-service organisations supporting the Hub will offer a range of volunteering opportunities, helping to increase community participation and engagement among veterans and their families.
Funding amount and arrangements, merits review and consultation
Funding of $3.0 million for the grant was included in the 2025-26 Mid-Year Economic and Fiscal Outlook under the measure ‘Delivering Veterans’ Affairs Election Commitments’ for a period of four years commencing in 2025-26. Details are set out in the Mid-Year Economic and Fiscal Outlook 2025-26, Appendix A: Policy decisions taken since the 2025-26 Budget at pages 219-220.
Funding for this item will come from Program 2.4: Veterans’ Community Care and Support, which is part of Outcome 2. Details will be set out in the 2025-26 Portfolio Additional Estimates Statements for the Defence Portfolio (Department of Veterans’ Affairs).
Funding will be provided through a closed non-competitive grant opportunity to the Ballarat City Council. The eligible invited application from the Ballarat City Council will be individually assessed against the selection criteria.
The grant will be administered in accordance with the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013, the Public Governance, Performance and Accountability Rule 2014, and the Commonwealth Grants Rules and Principles 2024 (CGRPs). Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in administering the grant.
Grant opportunity guidelines and information about the grant will be made available on the GrantConnect website (www.grants.gov.au) and grants, once awarded, will also be reported on the GrantConnect website. The grant will be administered by the department. The Minister for Veterans’ Affairs (the Minister) will be the final decision-maker for the grant.
An expert panel will assess all eligible applications against the assessment criteria. The expert panel will comprise department officials, including at the Senior Executive Service Band 1 level and Executive Levels 1 and 2, and, pending availability, external ADF advisors. The panel will make recommendations to the Minister on whether to approve the application for a grant.
While the Ballarat Hub will be operated by BVAC, the City of Ballarat is well placed to be the lead organisation to apply for the capital works grant to upgrade the facility. The Ballarat City Council has a mature governance structure and comparable capital works experience suited to implementation of a project of this scale. As the building owner of the proposed site for the capital works grant, the Ballarat City Council is also the authorised organisation to seek and undertake development and construction activities for this facility and will be required to demonstrate how the facility would be available for BVAC to establish the Ballarat Hub. A summary of the approved project may also be published on the department’s website and may be subject to media announcements by the Minister.
Funding decisions made in connection with the grant are not considered suitable for independent merits review, as they are decisions relating to the allocation of a finite resource from which all potential claims for a share of the resource cannot be met. In addition, these decisions relate to the provision of a one-off grant to a certain service provider over other service providers and any funding that has already been allocated would be affected if the original decision was overturned. The Administrative Review Council has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the guide, What decisions should be subject to merit review?).
The review and audit process undertaken by the Australian National Audit Office provides a mechanism to review Australian Government spending decisions and report any concerns to the Parliament. These requirements and mechanisms help to ensure the proper use of Commonwealth resources and appropriate transparency around decisions relating to making, varying or administering arrangements to spend relevant money.
Further, the right to review under section 75(v) of the Constitution and review under section 39B of the Judiciary Act 1903 may be available. Persons affected by spending decisions would also have recourse to the Commonwealth Ombudsman where appropriate.
Local consultation regarding the grant occurred between elected Australian Government representatives, the Ballarat City Council and ex-service organisations prior to the election commitment announcement. The Ballarat City Council has established a local Stakeholder Reference Group with BVAC and other ex-service organisation stakeholders to continue engagement on delivery of the Ballarat Hub.
The department has also engaged with affected stakeholders since October 2025, including the Ballarat City Council, BVAC and a range of ex-service organisations including the Ballarat RSL Sub-Branch, Ballarat Legacy, Ballarat TPI Association and the Military Brotherhood Motorcycle Club to enable delivery of the commitment. Consultations have been productive in developing an understanding of community need and organisational capacity to deliver a project of this scale, and the consortium of ex-service organisation positioned to support the project following the establishment of the site. Feedback has been highly supportive of the proposed grant opportunity and its benefits for the local veteran community.
As is standard for capital works grants, appropriate community support will also be required to be demonstrated by the Ballarat City Council through the grant application process and any additional community consultation requirements will need to be met if a development application process is required (subject to local planning requirements).
Ongoing consultation with affected stakeholders is a key part of the program monitoring and governance mechanisms. The department will continue to engage closely with the Ballarat City Council on the implementation of the activities and monitoring throughout the life of the grant agreement. Collaboration with the members of the established Stakeholder Reference Group members will continue over the life of the grant as BVAC’s service delivery model is refined and as the refurbishment of the facility progresses.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the defence power (section 51(vi)) of the Constitution.
Defence power
Section 51(vi) of the Constitution empowers the Parliament to make laws with respect to ‘the naval and military defence’ of the Commonwealth and State, and ‘the control of the forces to execute and maintain the laws of the Commonwealth’.
The purpose of the grant is to establish a facility to enable support for veterans and their families through wellbeing, advocacy and social connection activities.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Financial Framework (Supplementary Powers) Amendment (Veterans’ Affairs Measures No. 1) Regulations 2026
This disallowable legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the legislative instrument
Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FFSP Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. The powers in the FFSP Act to make, vary or administer arrangements or grants may be exercised on behalf of the Commonwealth by Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.
The Financial Framework (Supplementary Powers) Amendment (Veterans’ Affairs Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the government to provide a grant to the Ballarat City Council for the Ballarat Hub (the Ballarat Hub). The grant will be administered by the Department of Veterans’ Affairs, part of the Defence portfolio.
The grant aims to provide targeted capital works funding for the delivery of an appropriate facility intended to address the needs of Australian Defence Force (ADF) members, including reservists, veterans and their families in Ballarat and the surrounding region. The Ballarat Hub will be operated by the Ballarat Veterans’ Assistance Centre (BVAC), a registered charity dedicated to providing support, advocacy, and resources for veterans and their families, in partnership with other local ex-service organisations.
Funding of $3.0 million over four years from 2025-26 will be provided to the Ballarat City Council to fund capital works to partially refurbish an existing Council-owned building to create a welcoming, functional, and accessible support centre.
The Ballarat City Council, as the property owner, will collaborate closely with BVAC and other local ex-service organisations to ensure the design and delivery of the facility is
fit-for-purpose. Once the facility refurbishment is complete, the Ballarat City Council will manage access and use arrangements with BVAC and supporting service delivery partners for the facility’s operations.
Human rights implications
This disallowable legislative instrument engages the following rights:
- the right to health – Article 12 of the International Covenant of Economic, Social and Cultural Rights (ICESCR), read with Article 2, and Article 25 of the Convention on the Rights of Persons with Disabilities (CRPD), read with Article 4;
- the right to live, take part and be included in the community – Articles 19 and 26 of the CRPD; and
- the right to participation in cultural life, recreation, leisure and sport – Article 30 of the CRPD.
Right to health
Article 2 of the ICESCR provides that each State Party undertakes to take steps to the maximum of its available resources with a view to achieving progressively the full realisation of the rights recognised in the Covenant, by all appropriate means, including particularly the adoption of legislative measures’.
Article 12(1) of the ICESCR promotes the right to the highest attainable standard of physical and mental health.
Article 4 of the CRPD requires States Parties to undertake to ensure and promote the full realisation of all human rights for those with a disability without discrimination.
Article 25 of the CRPD also states that “States Parties recognize that persons with disabilities have the right to the enjoyment of the highest attainable standard of health without discrimination on the basis of disability”.
The Office of the United Nations High Commissioner for Human Rights and the World Health Organization (WHO) has stated that the right to health entails a right of access to a variety of public health and health care facilities, goods, services, programs and conditions necessary for the realisation of the highest attainable standard of health. The 1946 Constitution of the WHO defines health in its preamble as “a state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity”.
The Ballarat Hub will provide supports to veterans and their families, including those with disabilities and those experiencing mental health challenges.
Right to live, take part and be included in the community
Article 19 of the CRPD requires States Parties to ‘recognise the equal right of all persons with disabilities to live in the community, with choices equal to others’ and to ‘facilitate full enjoyment by persons with disabilities and their full inclusion and participation in the community’.
Article 19(b) of the CRPD goes on to say, including by ensuring ‘that persons with disabilities have access to a range of in-home, residential and other community support services, including personal assistance necessary to support living and inclusion in the community, and to prevent isolation or segregation from the community’.
This is complemented by Article 26(1) of the CRPD, which requires States Parties to take effective and appropriate measures ‘to enable persons with disabilities to attain and maintain maximum independence, full physical, mental, social and vocational ability, and full inclusion and participation in all aspects of life’.
The Ballarat Hub will promote the rights of veterans and their families with the physical and mental impacts of their service, or the service of a partner, to access social and financial services, medical treatment, advocacy support and referral pathways to Open Arms, and other departmental and government programs. In addition to providing direct support and referrals to other providers, the Ballarat Hub will provide an important social connection for veterans and families, including those with disabilities or those experiencing mental health challenges. Further, the ex-service organisations who will operate or support the Ballarat Hub offer a range of volunteering opportunities which will increase participation of veterans and families in their local community.
Right to participation in cultural life, recreation, leisure and sport
Article 30(5)(c) of the CRPD states that ‘with a view to enabling persons with disabilities to participate on an equal basis with others in recreational, leisure and sporting activities, States Parties shall take appropriate measures to ensure that persons with disabilities have access to sporting, recreational and tourism venues.
The Ballarat Hub will support veterans with disabilities with referral pathways to mental health treatment and other health and support services to enable participation in cultural life, recreation, leisure and sport. The Ballarat Hub will encourage greater social and community inclusion for veteran within the local veteran community, and with other ex-service organisations’ networks. Further, the ex-service organisations who will operate or support the Ballarat Hub contribute to a range of cultural events, including those commemorating ADF service, in partnership with the local community.
Conclusion
This disallowable legislative instrument is compatible with human rights as it promotes the protection of human rights.
Senator the Hon Katy Gallagher
Minister for Finance